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Regal Cinemas Completes Chapter 11 Recovery Plan

January 31, 2002|From Bloomberg News

Regal Cinemas Inc., the biggest movie theater chain, completed its Chapter 11 reorganization and emerged from bankruptcy under the ownership of an investors' group led by Denver billionaire Philip Anschutz.

In October, Regal became the eighth major U.S. theater operator to file for protection from creditors in the last two years. U.S. Bankruptcy Judge Marian F. Harrison in Nashville approved the company's recovery plan, which was supported by 95% of Regal's creditors.

Investors led by Anschutz Corp. and Oaktree Capital Management converted their controlling stake in Regal's debt into new shares in the closely held company.

Knoxville, Tenn.-based Regal owns about 335 theaters with more than 3,800 screens. Besides Regal, theater chains such as Loews Cineplex Entertainment Corp. and General Cinemas Theaters Inc. have filed for bankruptcy protection.

The industry is suffering from a construction glut of so-called multiplex and megaplex theaters, analysts say. The trend is being reversed, they say, toward fewer screens and consolidation.

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